After the MTA proposed fare hikes today, several folks threw in their two cents. Here's a run-down of some:
City Council transportation chair John Liu:
Before the MTA decides to once again hike transit fares, New Yorkers
need to be assured that a thorough top-to-bottom review of potential
cost-saving measures has taken place. While we welcome the MTA's
apparent willingness to explore other revenue options, there has still
not been a full accounting of hundreds in millions of dollars
earmarked for projects such as the abortive LaGuardia Airport
Extension and the ongoing fiasco to create computer-driven trains on
the L Line. Furthermore, a serious effort must be made to reverse the
decade-long cut in State subsidies for mass transit - a trend that has
led to deferred maintenance and service cuts, even as fares have
increased.The timing for this fare hike is awful. We're on the cusp of sending
a very strong message to New Yorkers that mass transit is the way to
go. A fare hike at this point would contradict this message -
undermining the goal of reducing congestion - and further contribute
to an unfair burden on working families. City straphangers already
pay almost 70% of the system's operating budget - far above and beyond
the 40% national average. Before we ask commuters to pay more out of
pocket, the MTA must do its due diligence and demonstrate an absolute
need for higher fares.
Advocacy group the Straphangers Campaign:
Here are some questions that New Yorkers should be asking about a possible fare hike in the months to come:Do the financial numbers show the MTA facing a serious budget deficit in 2008 and beyond?
Here the MTA will have to make its case. This will be the agency's biggest challenge since it will be running a surplus in 2008, although it predicts large deficits in the following years. Much of the MTA's long-term deficit is caused by growing interest on the $32 billion that the MTA has been forced to borrow since 1982. These bonds made up for a lack of city and state aid badly needed to fund key repairs to the 103 year old transit system. Borrowing costs will eat up an astonishing 20% of the MTA's costs by the end of the decade. It is only fair to acknowledge that the MTA has what is called a "structural" deficit that will require new revenues in future years to address recurring deficits. But there is no question that many New Yorkers - especially the most vulnerable economically -- will be asking what they are getting for a fare increase.
Who should contribute to solving the MTA's financial woes?
The MTA now receives billions in financial support from riders through fares, motorists through tolls and gas taxes, and corporations, consumers and property owners, all through dedicated transit taxes. That makes sense. All who benefit from the biggest transit system in the U.S. should support it.
Shouldn't riders pay the whole tab?
Riders are already paying more than their fare share. In 2005, MTA told federal transit officials that the fare burden on its riders was 58% - with subways at 68% and buses at 42%. The national average for big transit systems is 40%. MTA CEO Lee Sander told a state legislative committee this January: "In 2007, MTA expects to generate $5.4 billion, or 60%, of its total $9.2 billion in operating revenues primarily from fares and tolls. This is a phenomenally high fare box return."
How do we make sure riders aren't the only ones asked to help out?
Any proposal to raise fares should only be seriously considered if and when the state legislature approves Mayor Bloomberg's congestion pricing proposal and/or other transit aid to raise billions of dollars to fix transit and take pressure off the budget. As was the case in 2003, the decision on fares should not be made before the early spring - specifically no earlier than March 31st, 2008, the date the state legislature is due to decide the fate of congestion pricing.
Are there ways for the MTA to take the sting out of a possible fare increase?
As part of past fare hikes, the MTA has taken other steps to help riders, such as insuring 30-day MetroCards from loss or theft. The MTA should now consider offering such new fare discount as:
* 14 day unlimited-ride MetroCard, more affordable and with more discount than 7-day passes.
* progressive pay-per-ride bonuses keeping low dollar threshold for discounts.
* lower fares for families traveling on weekends.
Regional Plan Association:
Today's release of the Metropolitan Transportation Authority's July
Financial Plan paints a bleak picture of the agency's finances over the
next four years. Although the MTA projects a balanced budget for 2007,
deficits begin to balloon between 2008 - 2011 as pension, health and
welfare costs, and particularly debt service rise rapidly.The MTA's deficit problems are not due to reckless spending. In fact,
over the last ten years the MTA has spent their operating funds more
efficiently as it has worked to accommodate unprecedented increases in
bus, subway and commuter rail ridership. As laid out by the MTA in a
fully open and transparent way - which has not always been the case -
the MTA is today faced with an enormous fiscal crisis if action is not
taken soon.While the MTA does not need a fare increase to close gaps in the near
future, unless action is taken early, large deficits will begin to have
a dramatic affect on fares and service. While no one likes the idea of
a fare and toll increases, the choice is clear: pay now or pay more
later. The plan the MTA presents is not a quick fix, but rather a
multi-year approach a multi-year problem.Riders should not be expected to bear the burden alone for the MTA's
planned gap-closing actions, particularly since no acceptable levels of
fare increases and service cuts would close the MTA operating budget
gaps by themselves. Other sectors must share the burden, not just
transit riders but drivers, not just business, but labor, and not just
the City but the State. However, the agency should be prepared to both
keep the fare box recovery ratio down - already one of the highest in
the nation - and seek additional State aid if necessary.The Mayor's congestion pricing should help ease the amount of debt the
MTA needs to for its vital repair and expansion programs. However,
should the congestion pricing fail to be put in place, the pressure on
both the MTA's capital and operating budgets would become even more
severe. Moreover, net revenues from the congestion pricing program will
not kick in until 2009 at the earliest.Additionally, it's imperative the MTA does not cut service during the
implementation phase of congestion pricing. Rather, RPA expects the MTA
will do just the opposite, add new service with additional help from the
City and Federal government.We cannot afford to jeopardize the success of the MTA system which has
enabled the extraordinary growth of the downstate region's economy and
tax base since we began restoring the MTA to a state of good repair in
1980. And we cannot accommodate the region's projected population and
economic growth unless proposed expansion of the MTA system proceeds as
planned.Regional Plan Association looks forward to working with the MTA and our
partners in the civic, business, and labor communities over the coming
months leading to the adoption of the MTA financial plan to find
long-term solutions to put the MTA on a sound financial footing, and by
doing so give the citizens of our metropolitan region the transit system
it needs and deserves.
The Citizens Budget Commission, a good government think tank:
The Citizens Budget Commission commends the MTA for developing a transparent
and essential preliminary financial plan that provides vital information for
the public debate that will follow. The plan presents a realistic assessment
of the budget gaps faced by the agency and identifies multiple strategies
that are available to deal with them, including moderate and predictable
fare increases.
It is vital to the region’s economic health that the MTA’s finances be put
on a sound long-term basis. At the upcoming public hearings on the proposed
fare increase, the CBC will present its recommendations drawing on research
presented in its 2006 report “How to Balance the MTA’s Budget.” They involve
spreading the transit system’s costs more equitably among riders, taxpayers,
and motorists. The full report can be found at
http://www.cbcny.org/publications.html.
